1.

There is an overdraft in the joint names of A and B and there is a credit balance in the
name account of A. Can the banker set off the credit balance against the overdraft.
Give reason
2. D is the guarantor of a loan granted by the bank to S. The loan has become sticky.
There is a credit balance in the account of D. Can the banker set it off against D’s
liability as a guarantor?
3. On June 20th your branch received a garnishee order to attach all sums owing by the
bank to your customer X. X has a joint account with Y in your branch and an overdue
unsecured loan account in the name of X in which he owes the bank Rs. 1000.
4. You have a joint account of Mr and Mrs Desai as ‘joint account’ in your branch. Mrs.
Desai approaches you for knowing the account balance. How would you react?

5. As branch manager how will you deal with the following situations?
a. Your customer sends a crossed cheque drawn by A in favour of your bank for
crediting it his (the customer’s) account with your bank.
b. Smt. Radha P. Patel sends for the credit of her account with you a cheque
drawn in favour of Smt. R P Patel and endorsed by her as Smt. Radha Patel.
c. Cheque, dated 17th April 2009 presented on 8th July 2009
d. Paying a cheque to B which is drawn in favour of A and marked ‘not
negotiable’.
6. ‘Exclusive sports club’ wants to open a current account at your branch.
What are the formalities you will need for opening the account and the points you
will keep in mind in regard to the operation?

7. Two persons Mr. Rohit and Mr. Mohit maintain a joint saving account
with the operating style ‘either or survivor’. Mr. Mohit filed insolvency petition
and in the meantime a cheque drawn by Mr. Rohit is presented for payment. What
course of action will you take?

8. A cheque for Rs. 50,916 paid by a bank is found later to have been
chemically altered, the amount having been raised considerably, Can the bank
claim protection?
9. How would you deal with the following situations as a banker?
.
a) An income tax officer approaches you and requests to let him know the balances
in the accounts of three valuable customers of your branch. He informs that he
requires this information as the income tax department has to recover arrears of
tax payable by them.
b) There is a credit balance in the account of A. The banker wishes to set this off
against an overdraft in the joint name of A and B.

10. You are in the top management of a public sector bank which is facing a lot of
competition from other private and foreign sector banks. Your bank is into all fund–
based activities and you are given a target of raising the profits by another 20% by the
next year. What course of action will you suggest?